SWOT Analysis

SWOT ANALYSIS

SWOT stands for the internal strengths, weakness and the external opportunities and threats. A swot analysis summarises the key issues from the industry and the strategic capability of an organisation that are most likely to impact on strategy development.

Strengths

· Strong brand awareness. (Next has a strong heritage and roots in its brand perception relating to good design and quality)

· Truly integrated multi-channel clothing retailer. (Its Internet operations are seamless with the directory and the company also uses this channel to drive customers into stores.)

· The Next womenswear blouse collection is a combination of design, quality and comfort.

· Good value for money.

· Costs of production are falling as manufacturing is increasingly being relocated to cheaper locations around the world. This may lead to reduction in price of the product range.

· MFA expired January 05’ – leading to major impact on value growth. (International developments will also have a major impact on value growth. An international pact — the Multi Fibre Arrangement (MFA) — has imposed strict limits on imports of textiles from the developing world into industrialized countries since the 1960s. However, the MFA expired in January2005 and imports are now no longer subject to quotas. Consequently, the global textile industry is expected to consolidate, with production shifting to the most efficient, cheapest and most reliable suppliers — India a...